eBusiness Weekly
Paying taxes can be an expensive process for a business but there are a number of ways that one can utilise to manage compliance costs.
These include:
Tax Knowledge: The people responsible for managing tax issues in a business should be well grounded in tax matters that affect the business enterprise. Tax education can be provided by private players or by ZIMRA on request. ZIMRA also arranges various taxpayer workshops and seminars free of charge.
Registration: All registered taxpayers need to ensure that their details are up to date. Any taxpayers that are liable to registration and have not done so should register. Taxpayers are registered for various tax heads which they should monitor and ensure adherence to requirements.
Account Management: ZIMRA is responsible for managing tax information which shows returns submitted and payments remitted. However, it is also important to ensure that businesses registered with ZIMRA check their account balances regularly. This will help in addressing any errors or omissions on time.
Co-operation: The law requires taxpayers to submit returns and remit payments by prescribed due dates. The returns should be complete and accurate and payments should be made in full. Any errors and omissions should be corrected in collaboration with ZIMRA.
In some instances audits or investigations are carried out in which taxpayers are requested to provide information and records, and responding positively to requests will assist manage costs and time.
In general, it is important to comply with the law and take corrective measures on time.
Requesting for assistance: There are instances when the taxpayer is not sure of the correct tax treatment of a transaction. ZIMRA is available to give advice on all tax matters and clients should contact ZIMRA for advice. In some instances, taxpayers can apply for advance tax rulings which includes getting ZIMRA’s opinion on tax transactions.
Taxpayers who omitted income from their returns or submissions made in 2018 and previous years are encouraged to utilise the Voluntary Disclosure Program which was extended by the ZIMRA Commissioner General to 31 December 2018.
The benefit of applying under this programme is that penalties chargeable shall be waived in full and payment arrangements are negotiated.
Requirements for making Voluntary Disclosure
A full disclosure should be made in the application form. Where information is not fully available estimates can be made and explanations/justifications given.
A Voluntary Disclosure Form should be completed and submitted to the nearest ZIMRA office, stating the omitted income and other compliance obligations.
Any issues that are already known by ZIMRA should not be included in the voluntary disclosure .
Voluntary Disclosures should be made before the initial interview is carried out for persons notified of an audit or investigation.
The disclosure does not include refunds not claimed.
The application shall include a proposed payment plan with justification for the proposal.
For more information, please approach your nearest ZIMRA Office.
Disclaimer: This article was compiled by the Zimbabwe Revenue Authority for information purposes only. ZIMRA shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority.
To contact ZIMRA: WhatsApp line: +263 782 729 862. Visit our website: www. zimra.co.zw. Follow us on Twitter: @Zimra_11 Like us on Facebook: www.facebook.com/ZIMRA.11. Send us an e-mail: [email protected]/[email protected]. Call us (Head Office): 04 –758891/5; 790813; 790814; 781345; 751624; 752731 e-TIP: http://ecustoms.zimra.co.zw/etip/. Please note that all ZIMRA services are free of charge!!
